Fords post an 8.1 billion loss today

[Jamie]

Back to the Poll

The Big Three are indeed wobbling. But Honda Motors tops financial estimates. Quarterly net profit (released yesterday) shows a "surprising" 8% rise. Citing "rising costs for raw materials and crumbling US auto sales", Honda nevertheless reduced its annual profits and sales forecasts. Jamie

 

[Sidecar Flip]

I strongly suspect the 'Big Three' will be the medium size '2' before long.

 

[webmaster]

IMHO, Innovation has been lacking in the SUV market.

My Toyota FJCruiser represents some degree of engineering and design innovation. It's 20mpg can be easily cut in half by using cheap gas and pretending it's a sportbike Otherwise it does well with it's torque-monster-V6 engine on gas mileage.

Fuel prices are high, but not high enough to force most FJ owners to give up these cool vehicles. Even today, if an FJ winds up at a used car lot, it doesn't take long to sell.

This isn't the case with other SUVs. I was caught in some intense rain recently and some of the cars I "dodged" were newer Chevy, Ford, and Mercury SUVs that couldn't handle being that much water.

If someone is envious with how easy it is to clean the inside of an FJ (they don't have carpet), one can pick up smaller Toyota or Honda alternatives also that have rubber floors and floormats. In these times, it's also cool to strap fancy HD-DVD or Satellite players inside these vehicles now - kids have more fun, than with inferior factory built-in alternatives that cost much more.

One can look good in an Escalade, but folks like me will still have more fun. That is what is missing from the American Auto Industry today. When the economy is bad, customers want innovation - which translates to better fuel economy and the flexibility to still achieve the things they need, whether it be cool gadgets, transporting large families, or continuing to enjoy a particular outdoor sport.

Until then, buyers will turn to the used car supply for inexpensive SUVs and Trucks to support whatever their needs are.

 

[TxRIIIRider]

Even in the luxury car department there hasn't been much. I had a 1992 Lincoln Town Car, which I recently gave to an older friend of ours (He's 86 and still drives good!). It was in great shape. We had an opportunity last summer to rent an '07 Cadillac STS with the 4.6 V8 (the same size V8 as in my Town Car). The Cadillac had no more power than the Town Car, and according to the computer, got about the same gas mileage as well. For ammenities, besides the stereo, they were exactly the same! The STS even looked very similar inside, except for the console shift and bucket seats.
The STS had a smaller trunk. Other than that, they were the same car. I pad $2500 for the Town Car.. The STS goes for $44,000..

I now have a 1999 F350, and a 1996 Pontiac Bonneville (wish it was a Triumph Bonneville!) I pad $13,500 for the F350 and $2300 for the Bonneville. They both are in great shape and I will probably never part with the F350.

One of the problems of car manufacturers, is that starting about the mid 1990s, the cars were built TOO GOOD! They last much, much longer than cars did before. There is almost no reason to buy a new one. My Bonneville has 140,000 miles on it and runs and looks great! My F350 has 150,000 miles on it and runs and looks great as well! Why would I pay $35,000 for a new one?

 

[Xchoppers]

Those gas guzzlers will even last longer now, with the price of gas
My wife's 2001 ElDorado gets 30 MPG on the highway and my '94 Corvette gets 27. Both have very low miles 'cause we go everywhere by motorcycle anyway. We'll probably never need new cars.
P.S.: I also have an old '89 GMC for hauling crap. It has 79,000 miles and still runs great .

 

[Toystoretom]

Innovation is out there, but many people are scared of it. As most of you know I are a Nissan mechanic (so I vote for Chrysler to go south also) and we have several cars with a CVT transmission. Nissan has used this tranny for over 20 years in Asia and it is pretty bullet proof at this stage. Some of the major issues with it are the local high school drop out putting the wrong fluid in it at Sphincter Lube and the very minor electrical gremlins that every car suffers with. All in all they are very reliable, I have yet to replace one personally.

The main advantage to this transmission is that it keeps the engine in its most efficient RPM range at all times, thereby adding a few percent to the cars overall fuel economy. Plus, since you are in the best powerband at all times, it makes the car very zippy. Its kinda like dinner and a show .

People are terrified of this tranny and if that particular model of car comes with a conventional transmission they tend to choose that one over the CVT. When it comes to a large outlay of cash for a new car people tend to be very cautious or conservative.

Nissan also has a new widget... variable valve lift (not variable valve timing, we've had that since about 1993 and you didn't even know it). If people knew that was in their cars they would just go wiggity. I'm starting to wonder if consumers should be locked out of the engine bay, a dealer only access area.

We also have hybrids.... people are scared of those also.

Did you know that 90% of all warranty claims are on items that are in plain sight of the driver? "This radio knob doesn't look quite right" or "I thought I saw a flaw in my speedometer lens last Tuesday" or "I don't think my steering wheel is perfectly round" or "My seat upholstery doesn't match my purse".

Can you tell I am about at the end of my technician life cycle?

 

[wilbur-t]

Tomo, Ford dropped their cvt because of poor gas mileage. Go figure?

 

[Gunshots]

The learning curve of the American automaker stands second only to that of the motorcycle tire manufactures ill attempt to build a decent tire. They both think of us as idiots, and we continue to support them by buying products that are tested to fail far to premature.

 

[Sidecar Flip]

Can you tell I am about at the end of my technician life cycle?

That's obvious. One thing though. You'll have to enshrine your dirty fingernails and dispose of your dirty work shoes.

My buddy's wife just bought a Beemer with a CVT. I drove it and it rocks.

Be like me, retire and go teach. Let the students get the dirty hands and you just give the grades. If I can do it, so can you.

I threw Nissan, Kia and Honda in there just for kicks and grinns.